Personal loan rates move often, and the best rate you get depends on your credit profile, salary, and relationship with the bank. Below is a consolidated list of the banks that (as of early 2026) are offering the most competitive starting rates for unsecured personal loans in India — and short notes on four partner banks: HDFC, ICICI, Axis, and AU Small Finance.
Data snapshot sources: official bank pages and leading loan comparison sites (HDFC, ICICI, Axis, AU Small Finance; Paisabazaar / BankBazaar / ClearTax). Always confirm on the bank’s site before applying because rates and offers change frequently.
| # | Bank / Lender | Typical starting interest rate (p.a.) | Notes |
|---|---|---|---|
| 1 | HDFC Bank | 9.99% p.a. (starting) | Strong product for salaried customers; quick approvals & digital process. |
| 2 | Axis Bank | 9.99% p.a. (starting) | Competitive fixed-rate offers and quick disbursal for eligible applicants. |
| 3 | IDFC FIRST Bank | 9.99% p.a. (starting) | Often competitive offers for salary-account holders. |
| 4 | Canara Bank | 9.95% - 15.40% p.a. (range) | Public-sector option with attractive slabs for certain profiles. |
| 5 | ICICI Bank | 10.45% p.a. (starting) | Strong digital experience and multiple product variants. |
| 6 | Indian Bank | 9.75% - 15.25% p.a. | Public-sector rate slabs depending on tenure and profile. |
| 7 | SBI (where applicable) | ~10.10% p.a. (starting) * | Large PSU lender; final rate depends on salary account and relationship. |
| 8 | UCO Bank | 10.95% - 13.95% p.a. | Public-sector lender with moderate starting rates. |
| 9 | AU Small Finance Bank | Varies widely — up to 30% p.a.; lower rates available for select profiles | NB: AU’s published upper ranges are high; negotiated rates can be much better. |
| 10 | Kotak Mahindra Bank / Others | ~10.99% p.a. onwards | Often competitive for high-credit-score applicants. |
*These are indicative starting ranges compiled from official bank product pages and comparison sites in early 2026. Most banks show a starting APR or “from” rate that applies to highly-creditworthy applicants only. See source links at the end of this article for exact product pages and current offers.
HDFC Bank lists personal loan offers starting at around 9.99% p.a. for eligible borrowers and continues to be popular for its quick digital process, broad branch network, and competitive EMIs for salaried customers. If you have a strong credit score and salary account tie-up, HDFC is one of the better options to negotiate the lowest rate. :contentReference[oaicite:0]{index=0}
ICICI’s personal loan pages show competitive starting rates (around 10.45% p.a. depending on the product and applicant profile). ICICI offers multiple personal loan variants — including payroll-linked and balance-transfer options — which may give you flexibility to lower your effective interest cost. :contentReference[oaicite:1]{index=1}
Axis Bank advertises personal loan interest rates starting at 9.99% p.a., often with fixed-rate options and quick disbursal for salaried customers. Axis’s digital process and pre-approved offers (for existing customers) can make it simple to get a low rate quickly. :contentReference[oaicite:2]{index=2}
AU Small Finance Bank lists personal loans that technically go up to very high upper ranges (reported up to 30% p.a. on some products), but its actual offered rates for bankable profiles are frequently lower. Because AU is an SFB with varied retail products, the effective rate you receive will depend heavily on income, CIBIL and the specific scheme. Compare the bank’s offer against other lenders before accepting. :contentReference[oaicite:3]{index=3}
While comparing banks can be confusing, MCFES makes the process effortless. As a financial facilitation partner, MCFES connects you with top banks and NBFCs to help you find the best possible personal loan rate based on your profile — without hidden charges or complex paperwork.
Whether you’re looking for a personal loan, a working capital facility, or credit limit expansion, MCFES ensures transparent and customized financial solutions.
Getting the right personal loan in 2026 is all about timing, comparison, and leveraging your financial profile. Partner banks like HDFC, ICICI, Axis, and AU Small Finance continue to lead with attractive rates — but working with MCFES ensures you access multiple offers and choose the one that truly fits your financial goals.